Snyder rejects advice to shut down Line 5, extends deal with Enbridge

ST. IGNACE, MI - Gov. Rick Snyder has rejected three recommendations from a state advisory board tied to operation of Enbridge's Line 5 oil pipeline, including one that proposed a temporary shutdown where it crosses the Straits of Mackinac.

Mike Shriberg, executive director of the National Wildlife Federation's Great Lakes Regional Office and member of the Pipeline Advisory Board, criticized the governor's response.

"Governor Snyder's response to the resolutions which passed his Pipeline Safety Advisory Board appears to be kicking the can down the road while the Great Lakes remain at risk," Shriberg said in a statement. "The state's failure to produce a timely and effective risk and alternatives analysis should not be an excuse for defensiveness and inaction."

The December advisory board meeting came in the wake of a new agreement between Enbridge Inc. and the state government, intended to improve safety and transparency issues tied to the 64-year-old twin underwater pipelines crossing the Straits of Mackinac.

In an apparent rebuke of that deal, three advisory board resolutions asked for revisions of the agreement, a new analysis of the public need for Line 5 and a temporary shutdown until damage to the pipeline's protective coating can be inspected and repaired.

The 645-mile Line 5 pipeline, built in 1953, runs from Superior, Wisc., to Sarnia, Canada, and transports up to 540,000 barrels of light crude oil and natural gas liquids per day. Enbridge has faced harsh scrutiny in recent years from environmental advocates and government officials alike over the viability of the aging pipeline.

Snyder begins his letter to Pipeline Safety Advisory Board members by pointing out none of the three surprise resolutions at the December meeting were adopted. The 2015 executive order creating the board requires "a majority vote of its serving members" to take action on proposed recommendations, he writes. The governor also addressed that question in a Dec. 15 interview with MLive.

"I appreciate the comments coming out of that," Snyder said. "But that was really five members of a 16-person board. So, I'm not sure I would call it truly a reflection of the advisory board."

On the a motion calling for a temporary shutdown until coating gaps can be inspected and repaired, five members voted in favor. Only one member - National Association of State Energy Officials representative Jeffrey Pillon - voted against it.

But the remaining seven voting members present for the vote - all either representing state government or the oil and gas industry - abstained. Co-chairwoman Heidi Grether was not present for the vote and Jerome Popiel, a representative from the U.S. Coast Guard, is a non-voting member.

Though the yeas outnumbered the nays, those seven abstentions meant the resolutions failed to be adopted by the board, Snyder writes in his letter.

"Since all the resolutions received fewer than eight votes in favor, none of the resolutions were actually actions by the Board," Snyder wrote. "That being said, I appreciate the service of each of you, and would like to address the topics of the resolutions."

In his statement, Shriberg argues the vote revealed deeper problems about the efficacy of the governor-appointed advisory board.

"The governor's assertion that the resolutions did not pass because the members of his cabinet did not vote for them means that the advisory board cannot conduct its work," he said. "The non-state actors voted overwhelmingly in favor of the resolutions, which means that the appointees not directly employed by Governor Snyder agreed. That should be enough to provide critical input to the governor."

In his letter to board members, Snyder also rejects the proposal for a temporary shutdown of Line 5 based on the threat that could pose to Michigan's propane supply. Since further inspections and repairs to the underwater section of Line 5 cannot be completed until the summer of 2018, the governor writes, an immediate shutdown could cause a propane supply crisis "potentially jeopardizing the health and safety of Michigan residents."

"With all respect, I do not believe an immediate and extended shutdown of the pipeline in the middle of winter is a proper approach that safeguards the health and welfare of Michigan citizens," Snyder wrote.

Shriberg disagreed, saying the state should force a shutdown based on recent revelations that there were significant gaps in the pipeline's protective coating.

"The solution is not to allow Enbridge more time to conduct its own analyses," he said. "If protective coating is not intact, it is the responsibility of the state to enforce its easement to protect the Great Lakes and work toward propane delivery alternatives that meet Michigan's interests, not Enbridge's."

The advisory board's second resolution would have recommended the state revise the section of its agreement with Enbridge regarding operations in sever weather conditions, specifically requiring a temporary shutdown when waves reach 3 feet rather than 8 feet.

The flow of oil beneath the Straits was stopped for about five hours on Dec. 5 after forecasts called for waves of more than 9 feet in the area. It was likely the first shutdown ever triggered by weather conditions, according to the company.

The governor rejects the recommendation, citing as reason only the difficulty reopening negotiations with the company could pose.

"I will simply say I appreciate the points made, but given the amount of negotiating time and effort that went into that specific provision, a request to re-open that provision would be extremely unlikely to result in an agreement to move in the direction envisioned by the resolution," he wrote in the letter.

Advocacy groups opposed to Line 5 called on the state government on Jan. 16 to initiate legal action against Enbridge and formulate a plan to decommission the pipeline. James Clift, policy director of Michigan Environmental Council, was critical of the unexpected Nov. 27 agreement between Enbridge and the state, which he called a "backroom deal."

The governor's staff responded by saying the new agreement addresses immediate concerns while the state continues to examine the risk of a potential oil spill, pointing to a new risk analysis being completed before a final decision is made about Line 5's future.

A third resolution from the advisory board that called on the state to more thoroughly assess alternatives to supply propane and oil, Snyder wrote, reflects work that is already underway. In response to its call for "a more robust study" of alternatives to Line 5, Snyder asks board members for details on who would conduct such a study, what it would cost, who would pay for it and how it would be completed by the June 25, 2018, deadline proposed in the resolution.

He ends the letter by explaining that discussions with Great Lakes researcher Guy Meadows of Michigan Tech University, who is leading a new independent risk analysis on the threat posed by an oil spill from Line 5, suggest the analysis may not be complete prior to Sept. 15, as originally expected.

Because of that, Snyder wrote, he plans to push back the deadline for a final agreement with Enbridge, from Aug. 15 to Sept. 30.

Enbridge responsed to the criticism of the governor's letter in a statement from spokesperson Ryan Duffy.

"The agreement signed between Enbridge and the State of Michigan lays out a positive path forward for Enbridge to demonstrate its commitment to continuing to drive down risk and in doing the right thing to serve Michigan and protect the waters of the Great Lakes," Duffy said. "We will continue to focus on implementing the agreement and on safely delivering the energy that Michigan businesses and residents rely on."

Asked why Brad Shamla, Enbridge's representative on the advisory board, abstained on the three votes on Dec. 11, Duffy declined to comment.